Uranium Energy Corp (NYSE American: UEC) has recently made a significant announcement that reflects a pivotal moment in its decade-long journey. The company’s Board of Directors has given the green light to resume uranium production at its Christensen Ranch In-Situ Recovery (ISR) operations in Wyoming. This move comes as a strategic response to the flourishing uranium market, characterized by robust fundamentals and recent supply shocks that have propelled prices to exceed $100 per pound U3O8.
Restarting Operations: A Long-Awaited Milestone
The fully permitted and past-producing Christensen Ranch ISR operations will contribute to the company’s objectives, with the recovered uranium set to undergo processing at the Irigaray Central Processing Plant (CPP). This plant, located in the Powder River Basin of Wyoming, is pivotal, serving as the hub for four fully permitted ISR projects, including Christensen Ranch.
The anticipated first production, scheduled for August of this year, will be financed using the company’s existing cash reserves, showcasing UEC’s commitment to remaining 100% unhedged. In line with this strategy, the produced uranium will be sold at prevailing spot market prices, a prudent move given the reported market price of $106 per pound U3O8 as of January 15, 2024, according to UxC.
To ensure a successful ramp-up of uranium production, the company is focusing on hiring and training additional operations personnel. The recruitment drive is expected to extend to local communities such as Buffalo, Gillette, Casper, Kaycee, and Wright, reinforcing the company’s commitment to the regions where it operates.
Amir Adnani, President and CEO of Uranium Energy Corp, expressed his enthusiasm, stating, “This is the moment we have been working towards for over a decade.” Adnani highlighted the strategic acquisitions and development of leading assets in the U.S. and Canada, coupled with an experienced operations team, as key factors leading to this milestone.
Expanding Initiatives: South Texas Hub & Spoke Platform
In addition to the Wyoming operations, the company is actively pursuing initiatives to resume production at its South Texas Hub & Spoke platform. Adnani mentioned that updates on the timing for this restart will be provided as milestones are achieved in that plan, indicating a multi-faceted approach to capitalize on opportunities across different regions.
Impressive Resource Base and Financial Strength
Uranium Energy Corp boasts the largest S-K 1300 compliant ISR uranium resource base in the United States. The Irigaray CPP serves as the hub central to eleven satellite ISR projects across the Powder River Basin and Great Divide Basin, with four of them being fully permitted. The disclosed Measured and Indicated resources in Wyoming projects amount to 66,198,200 lbs., with 58,460,000 tons and an average portfolio grade of 0.057% eU3O8. Additionally, Inferred resources in Wyoming projects total 15,053,700 lbs., with 10,859,000 tons and an average portfolio grade of 0.069% eU3O8.
When combined with the South Texas Hub & Spoke ISR Platform, UEC controls an impressive resource base, exceeding 75,000,000 lbs of Measured and Indicated resources and 25,000,000 lbs of Inferred resources. The company’s financial strength is evident, with $213.7 million in cash and liquid assets reported as of October 31, 2023, and no debt.
Wyoming Pre-production Preparations
To expedite the production restart, extensive preparations at the Christensen Ranch wellfields and satellite processing plant were completed in 2023. This involved the re-installation of equipment, re-attachment of piping, and various electrical testing, repairs, and upgrades. Subsequent work included a detailed wellfield startup plan, drilling to identify additional resources, and the submission of an application to the Wyoming Department of Environmental Quality to expand the Irigaray CPP licensed capacity from 2.5 to 4 million pounds U3O8 per year.
The Mine Units (MU7, MU8, and MU10) and their associated modules (“Header Houses”), where operations will initially resume, have been strategically positioned, as depicted in Figure 1 (“Mine Units for Restart of Operations”).
The technical information in the release has been reviewed and approved by Andrew Kurrus, P.Geo., Vice President of Resource Development, for the Company, acting as a Qualified Person under Regulation S-K 1300.
About Uranium Energy Corp
Uranium Energy Corp is emerging as the fastest-growing supplier of fuel for the green energy transition to a low carbon future. As the largest diversified North American focused uranium company, UEC is advancing the next generation of low-cost, environmentally friendly ISR mining uranium projects in the United States and high-grade conventional projects in Canada.
The company operates two production-ready ISR hub and spoke platforms in South Texas and Wyoming. These platforms are anchored by fully operational central processing plants and served by seven U.S. ISR uranium projects with all major permits in place. In addition to its operational assets, UEC holds one of the largest physical uranium portfolios of U.S. warehoused U3O8, a significant equity stake in Uranium Royalty Corp. (the only royalty company in the sector), and a pipeline of resource stage uranium projects in the Western Hemisphere.
Managed by professionals with decades of hands-on experience in uranium exploration, development, and mining, Uranium Energy Corp stands at the forefront of shaping the future of uranium production and contributing to the green energy transition.
Source: PR Newswire